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BEEF UP YOUR COMPETITOR: A MODEL OF ADVERTISING COOPERATION BETWEEN INTERNET SEARCH ENGINES
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Advertising I
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| Session Chair | Jose Luis Moraga, University of Groningen |
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We propose a duopoly model of competition between internet search engines endowed with different technologies and study the effects of an agreement where the more advanced firm shares its technology with the inferior one. The superior firm enters the agreement only if it results in a large enough increase in demand for advertisements at the competing firm and a relatively small improvement of the competitor's search quality. Although the superior firm gains market share the agreement is beneficial for the inferior firm. The cooperation is likely to be in line with the advertisers' interests and to be detrimental for users.
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When & Where |
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Thu 3 Sep 2009 |
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14:00 - 15:30 |
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Paper Reference: 175
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